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E-Commerce

Submitted By:
Raisa Adhikari - 43 Ravi Pandey - 45 Shantnu Jain 51 Shubham Yadav - 53 Yogesh Kumar Gupta - 62

Introduction
E-Commerce is sharing business information, maintaining business relationships and conducting business transaction by means of telecommunications network
It is conducting the exchange of information using a combination of structures and unstructured messages across the entire range of networking technologies The Internets WWW has been the prime driver of contemporary E-commerce E-commerce enables organizations of all sizes and in all market sectors to improve their competitiveness

Traditional vs. Electronic


Traditional commerce: Firms engages in many other activities in addition to buying and selling their product Traditional commerce include: buyers and sellers using old fashion method to do business Electronic Commerce: Firms has used various electronic communications tools to conduct different kinds of business transactions. Electronic Commerce use technology to moves people around the world

Advantages of E-Commerce
Increase sales and decrease sales costs

A small firm's promotional message out to potential customers in every country in the world with good ad
Reach narrow market segments that are geographically scattered Increases sales opportunities for seller, it also increases purchasing opportunities for the buyers Businesses can identify new suppliers and business partners Provides buyers with a wide range of choices than traditional commerce

Benefits for general welfare of society:


Electronic payments of tax refund, public retirement, and welfare support cost less to issue and arrive securely and quickly when transmitted over the Internet Electronic payments can be easier to audit and monitor than payments made by check, providing protection against fraud and theft losses Electronic commerce enables people to work form home

Disad. of Electronic Commerce:


Many products and services require that a critical mass of potential buyers be equipped and willing to buy through the Internet. Costs and benefits have been hard to quantify Many firms have had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce Firms also have difficulty of integrating existing database and transaction-processing software designed for traditional commerce into the software that enables electronic commerce Firms also face cultural and legal obstacles to conducting electronic commerce

Main Areas of E-Commerce


Business to Business (B2B)

Business to Consumer (B2C)


Business to Government/Government to Business (B2G/G2B)

Benefits of E-Commerce

The market for a Web based is not bound by any geographical constraints
The transaction cost go down tremendously in a well set up site Better, more inviting, convenient and comprehensive presentation of goods is conducive to greater sales Small and large firms alike have the opportunity to set-up and conduct business on the internet.

An inexpensive advertising medium for organizations, it allows organizations an opportunity for publicizing their products and services at minimal cost.

Barriers to E-Commerce
1. Access and Connectivity 2. Authentication and Standardization

3. Cyber Laws
4. Technology

Promise & Threat


Impact and Issues of Electronic Commerce
1. The business, societal, and research problematic of E-commerce spans an immense range, which reflects the depth of change being caused by this rapidly expanding mode of doing business.

Limitations and Asymmetries of Infrastructure 1. 2. The infrastructure of the Internet, which acts as the current global information infrastructure, has acknowledged problems. The issues turn on the provision of sufficient band width for the surging use that is also moving to multimedia transmissions, and on the problems fostered by the decentralized nature of the Internet.

Risks in E-Commerce

Business practices
Information protection Transaction Integrity Privacy and Trust Global Efforts Towards Retaining Privacy & Building Trust Web Trust

TRUSTe
P3P (Privacy Preferences Project)

E-commerce Statistics
Business to Commerce (B2C) Commerce Statistic
U.S. Business-to-Consumer (B2C) E-Commerce Forecast (All in USD Millions) 1999 2000 2001 2002 2003 2004 2005 $28,550 $44,120 $61,820 $91,878 $125,265 $168,815 $227,690 Source:GartnerG2 (December 2001)

B2C
B2C Commerce
$28,550 $44,120 $227,690 $61,820
1999 2000 2001

$91,878

2002 2003 2004 2005

$168,815

$125,265

E-commerce Statistics
Costs of Traditional vs. Online Purchasing Processes-USD
Source: American Express/Ernst & Young, June 2002 Process Step Traditional Process Purchase Card + eCommerce Buying 59.00 3.40 Paying 12.00 0.34 Reconciling integration 19.00 0.70 Avg transaction cost 90.00 4.44

Tradnl vs. Online Graphs


Cost of Traditional vs. Online Purchasing Processes
90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 90.00

Transaction Cost in $

59.00

19.00 12.00 3.40 0.34 0.70 4.44

Buying

Reconciling integration

Traditional Process Purchase Card + eCommerce

Process Step

E-commerce Statistics
Total Worldwide E-Commerce Revenues, 2004 (B2B & B2C)
Source: Forrester Research Region Norht America Asia Pacific Western Europe Latin America Rest of World Total $3.50 $1.60 $1.50 $81.80 $68.60 Tril ion Tril ion Tril ion Bil ion Bil ion

Worldwide E-commerce Revenues


Total Worldwide E-Commerce Revenues

$3.50

$1.60 $1.50

$68.60 $81.80

Norht America

Asia Pacific

Western Europe

Latin America

Rest of World

E-commerce Statistics
Transaction Size At Commerce-Enabled Web Sites
Source: ActivMedia Research Size $1-50 $51-100 $101-500 $501-1,000 $1000-10,000 Up-$10,000 Average Sample 20% 13% 27% 9% 23% 8% $4,622 B2C 22% 15% 26% 10% 20% 8% $4,450 B2B 5% 5% 36% 5% 41% 8% $5,580 Median $300 $244 $800

Commerce Enabled Web Sites


Transaction Size @ Commerce Enabled WebSites
600000% 500000%
Percentage

400000% 300000% 200000% 100000% 0% $1-50 $101500 $100010,000 Size Average Sample B2C B2B

References

Business and Technology: Electronic Commerce: (http://www.e-centre.org.uk/products_buinesstech_ecommerce.htm)


Western Australia E-Commerce Centre: (http://www.ecommercecentre.online.wa.gov.au/government/egovwhat.htm) E-commerce Security: (http://www.ftc.gov/bcp/menu-internet.htm) Business to Business Marketplace: (http://www.traderinasia.com/b2bverticalmarketplace.html)